Japan and US in talks to expand gasoline exports

Source: Energy Digital

Date :16/05/2008 04:00:44

The US, the world’s biggest oil consumer, is in talks with Japan and several oil companies to seal an agreement which will see the number of exports increase.

The meeting, hosted by the US Department of Energy and Japan’s trade ministry, was attended by oil firms Exxon Mobil Corp. and Nippon Oil Corp. Japanese refiners are keen to boost exports of gasoline as falling oil demand in Japan has left the country with spare refining capacity.

Gasoline exports

Exports to the US of distillates such as gas oil have been on the rise but gasoline exports are still relatively uncommon.

Although the meeting concluded with no detailed arrangements of exports it was decided that the US would stand to gain from the agreement.

Japan’s economy grew 3.3 percent last quarter, helped by exports to Asia, faster than economists expected. Resisting the US slowdown, from the fourth quarter, Japan extended 0.8 percent, the fastest pace in a year. In the same period, the US economy only grew 0.1 percent.

Some economists believe the downturn in the US will only hit Japan after a time lag as companies, including Toyota Motor Corp., the nation’s biggest car manufacturer, expect sales in the US to fall.

May 16, 2008